Geoff Huegill has been dropped as a national ambassador for AustSwim - Australia's peak water safety and training body - after he and his wife were charged with possessing cocaine.

AustSwim CEO Gordon Mallet told MailOnline Huegill has been 'suspended' from his role after more than 10 years' service and described the situation as 'regrettable'.

The star Olympic swimmer and his wife Sara were charged with drug possession after security guards at Randwick Racecourse allegedly found them with cocaine in a private suite at the races on Saturday.

'At the moment we've suspended his activities for us, pending the outcome of further legal outcomes,' Mr Mallet said.

'The alleged incident is out of character but Austswim has zero tolerance and we've suspended the relationship to let natural justice take its course'

Mr Mallet said he has shared written correspondence with Huegill since the drug charge became public and that 'he's extremely upset and remorseful'.

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Charged: Geoff Huegill and wife Sara were charged after allegedly being found with white powder on Saturday

Champagne Stakes: Geoff Huegill's picture posted on Instagram taken at the running of the Champagne Stakes at Royal Randwick Racecourse where he and his wife Sara were arrested and charged with possession of cocaine

Huegill, 35, was at the newly-renovated racecourse with his wife Sara Hills, 30, late on Saturday afternoon around an hour after the last race had run when police and security guards watched CCTV of the couple entering a disabled toilet together. He is still listed as an ambassador on the Austswim website.

The Huegills, who are the parents of two daughters, Mila, 2, and a three month old baby girl, were guests at the running of the Australian Turf Club's $400,000 race, the Champagne Stakes, which is sponsored by Moet & Chandon.

Police noticed the couple stayed in the toilets for some time. When the Huegills re-emerged and returned to the Moet & Chandon private box, police interviewed and around 5.45pm allegedly took possession of a small bag of cocaine.

A group of police then made a detailed search of the area with a sniffer dog.

Through their lawyer, Paul Hunt, the couple has declined to comment about the charges which are due before court next month.

A day at the races: Geoff Huegill and his wife Sara Hills in a picture posted on Instagram of them in a private box at Royal Randwick racecourse where they allegedly were arrested in possession of cocaine

Mr Hunt issued a statement confirming the couple has been ordered to face court.

It is uncertain now whether Huegill will make an appearance alongside some of Australia's most prominent sports men and women at the inaugural Sporting Legends lunch in Sydney this Friday. Huegill also runs his own fitness business, Club Skip, and represents the vitamin company, Swisse.

An extremely close friend of Geoff Huegill's reacted with shock when MailOnline told him of the charge.

'You're kidding me aren't you,' he said when informed of the Saturday afternoon nab.

'I didn't have a clue, I'm sorry to hear that. He called me this morning, I had a missed call from him, I'd rather not comment further.'

Geoff Huegill and his wife Sara Hills will appear in court next month after they allegedly were in possession of cocaine in a private box at Randwick racecourse

Racegoers were at Randwick for the final Saturday of the Sydney Autumn Racing Carnival.

'Police were patrolling Randwick Racecourse as part of their normal duties,' a NSW police spokesman told the MailOnline.

'They were directed to a suite in the grandstand by security guards where a 35-year-old man and a 30-year-old woman were allegedly found with a small quantity of white powder, believed to be cocaine.

'They were issued with a field court attendance notice for the offence of possessing an illegal drug.'

The Daily Telegraph reported Huegill was seen being escorted from the Moet & Chandon lounge by police on Saturday.

Huegill has credited his wife, a former publicist who he married in 2011, with turning his life around after a battled with obesity, drugs and depression.

Comeback: Geoff Huegill holds his bronze medal after coming third in the men's 50-metre butterfly at the FINA World Championships in Shanghai in 2011

Back in the pool: a toned and trimmed down Huegill back in the pool in 2012 Australian Olympic Swimming Trials in Adelaide a year after his marriage at Sara Hills, who he credited with turning his life around after he succumbed to drugs, alcohol and depression after his swimming career stalled

He revealed then that he had taken drugs and suffered from depression when he retired from swimming after the 2004 Athens Olympics.

Free of the discipline of 4am starts, Huegill engaged in binge drinking and became so hooked on fatty food that he put on 45kg. He also said he had suicidal thoughts.

'My life from about 2005 to 2007, I experimented with many different things. I guess that's a story that's in my past,' he told the Nine Network.

Huegill was the world record holder in the 50m butterfly between 2000 and 2003.

Four years ago, a slimmed down Huegill made a successful comeback and won gold medals at the 2010 Delhi Commonwealth Games, and a bronze at the 2011 World Championships in Shanghai.

Sydney lawyer, Paul Hunt, issues a written confirmation 'that on Saturday 26 April 2014, while attending a function at the Royal Randwick Racecourse, my clients Geoff and Sara Huegill were each issued with a Court Attendance Notice by NSW Police in relation to an alleged offence.

'As the matter is not yet resolved, my clients do not intend to make any further comment atthis point in time.'

The Australian Turf Club declined to comment, 'as it is a police matter' but said the club 'has a zero tolerance policy on illicit drugs'.

The pair will front Waverly Local Court on May 14 charged with possession of a prohibited substance.

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Geoff Huegill 'suspended' by Austswim after he and his wife were 'caught with cocaine'